By June 16, a mere four days after the initial public offering (IPO), filling one’s SpaceX (NASDAQ: SPCX) order at the original $135 or even the original opening price of $150 appeared like the best trade of 2026.
By press time on July 24, however, the situation had changed dramatically, and there was scarcely a moment in which buying shares of SPCX would have been profitable.
Specifically, after launching to the all-time high (ATH) of $225.64 by June 16, SpaceX stock’s fortunes reversed, and the equity found its latest close at $118.24 and is, at press time in the Friday pre-market, changing hands at $117.98.
Under the circumstances, had a trader managed to fill a $10,000 IPO order despite the competition, they would have suffered a $1,260.74 loss as their position diminished to $8,739.26.
For those who succeeded at buying on the morning of June 12, the losses would have amounted to $2,134.67 as their holdings fell from $10,000 to $7,865.33.
Why SpaceX stock price crashed after June 12 SPCX IPO
The SpaceX situation can be explained using a combination of factors that find their foundations in the mismatch between the company’s original valuation and its revenue and profits – or rather, losses.
Elon Musk’s other public company, Tesla (NASDAQ: TSLA), fell to a stock price of $319.69 and a market capitalization of $1.26 trillion shortly after its latest earnings report revealed revenue of $28.24 billion.
SpaceX set its IPO valuation at $1.77 trillion – roughly $500 billion greater than Tesla’s at the latest close – despite achieving less than $5 billion in sales during its most recent known quarter.
Additionally, the SPCX stock price issue was exacerbated by an uncommonly low initial float, significant online and media hype, an unusually generous insider lockup period, and possible overzealous buying ahead of the inclusion in the Nasdaq-100 benchmark index.
Looking ahead, the situation appears even more uncertain. Indeed, while Wall Street apparently remains confident in SpaceX’s future success, many of the most bullish price targets hinge on the rocket company becoming an artificial intelligence (AI) titan.
Notably, even if the AI ‘boom’ narratives prove largely correct, Elon Musk’s newer company faces an uphill battle given its vanishingly small market share within the sector.
Featured image via Shutterstock
